Strategic Human Resource Management and Balanced Scorecard in Business

This essay provides a comprehensive overview of Strategic Human Resource Management (SHRM) and its critical role in business success. It delves into the application of the Balanced Scorecard as a key framework for making strategic decisions within HR, emphasizing its role in monitoring and evaluating progress toward organizational goals. The essay highlights the importance of aligning HR strategies with broader management strategies, organizational capabilities, and performance improvements. It covers the steps involved in creating an effective HR scorecard, including strategy mapping, defining KPIs, establishing HR policies, aligning HR systems, and creating HR efficiencies. The essay also discusses the significance of effective recruitment, performance appraisal, and training and development within SHRM. The content underscores how these elements contribute to employee motivation, improved performance, and the achievement of business objectives. The essay concludes by emphasizing the overall importance of effective HRM for business success.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................8

MAIN BODY
Human resource management is being defined as the approach of the business through
which the company hires the people in order to fill the vacant position within the company. The
HRM is very important and crucial to make the management of the company effective and
efficient. The HRM starts with recruiting the employees for the vacant position within the
company and till the time they leave the company. The current essay will outline the strategic
HRM and the use of the balanced scorecard as a part of the strategic management. In addition to
this the different management strategies and different organizational capabilities will also be
highlighted within the essay.
The strategic human resource management that is SHRM is being defined as the process
of developing and implementing the different HR programs which address the business problem
and contributes within long term business (Delery and Roumpi, 2017). The SHRM is very
important for the business as this will assist the company in managing the working in effective
and efficient manner. The SHRM is very essential for the business to manage their operations.
The reason pertaining to the fact is that the concept of SHRM assists the companies in achieving
the knowledge and strategic goals of the company. In addition to this major strategic advance is a
system and maintaining the level of the organisation and to achieve the organisational goals.
There are different HR policies which assistant provide good base to the company in making
organisational strategy is more effective and efficient. Hence for the success of the business it is
very essential that a strategic human resource management is being implemented in effective and
efficient manner.
Under the strategic human resource the balanced scorecard can also be effectively used as
a framework to take effective decisions for success of the business. The balanced scorecard is a
performance management framework which is used for strategic decisions for the success of the
business. This balanced scorecard does not only set a strategic goal but it also provide a method
for monitoring and evaluating the progress done by the organisation in the direction of attaining
the goals of the business. In addition to this the balanced scorecard is referred to as a method of
management technique which is designed in order to provide a view to the company from the
both internal and external perspective. This balanced scorecard as the name suggests provides a

balance view of the company. This includes four different perspectives that are customer internal
business process learning and growth and financials.
The human resource aspect of the company ensures that right person is being placed at
the right position during the right work (Jiang and Messersmith, 2018). The whole success of the
company is totally dependent on the employees working within the company and the employees
are not effectively working then this will affect the overall growth and development of the
company. Thus for the success of the company the most essential aspect is to have a balanced
human resource management within the company. The reason pertaining to these factors that
when the human resource management department will be effective then they will be having
proper vision and relevant strategies in order to achieve that vision of the company. In case the
human resource department of company knows that how much requirement is within the
company and what type of people are suitable then they will try to find the best candidate for the
vacant position. In case the proper person is being hired or recruited on the place then this will
definitely result in successful achievement of the work. Hence as a result of this there will be
overall growth and development for the company and the employees as well. Thus it can be said
that there will be a balance growth for both the company and the employees.
The balanced scorecard framework is very system in effective human resource
management as well. The balanced scorecard under human resource department is known as HR
scorecard on the human resource for card. There are many problems which a 6 faces and the
most important problem which is our pages is that they have to make the strategies for
companies better in effective working. Under this management the HR scorecard is a great and
effective strategic measurement system which assists them in measuring and managing the
strategic role of the human resource department in growth and development of company. This
HR scorecard is meant for measuring the HR indicators of the business performance and making
sure that all these indicators are in the direction of growth. Along with the balanced scorecard
HR uses different strategic frameworks like HR KPI, HR metrics and many other strategic
frameworks. in order to create an effective HR scorecard there a major 5 steps which the human
resource department of any company has to undergo (Greer, 2021). These five steps involved the
following points-
The first step involves the creating an HR strategy map. The strategy map can also be
defined as the recruitment strategy map. The reason underlying this factors that the major work

of HR is to recruit employees to fulfil the vacant position within the company. Hence the major
work of HR department of any company is to identify that how the HR can connect the business
outcomes by hiring the right person at the right position (Iqbal, 2019). This HR strategy map
provides a direction to the HR that how they have to manage the operations of the business in
order to find best and maximum outcome from the operations of the company.
The second step is to create proper HR deliverables or KPI. This is the next step which
involves the defining of the deliverables which provides guidance to the employees that how
they have to work and in what direction. The HR scorecard example assists the employees in
having a strategic goal which can be measured against some KPI. These KPI awesome standards
against which the HR department of the company measures the performance of the current
workforce. For instance the current score of one employee is 10 and the KPI set against this of
the target is 20. Hence it can be stated that against the standard the actual performance is
deviating from 10. Hence this is the major key HR deliverables that is what actually the
employees have to achieve.
In addition to this the next step in the HR balanced scorecard is the making of HR
policies practices in process. This is most important element of the HR scorecard. The reason
underlying this fact is that every employee does not know how they have to perform the task and
what policies they have to follow. Hens in order to create a high performance working system
within the company it is essential for the HR department of the company to make their policies
and procedures and practices and acknowledge them to the employees. The reason underlying
this fact is that if a 4 has made effective policies but employees have no knowledge relating to
that then these policies will be of not any use. Hence it is very important for the business to
ensure that effective HR policies and practices are being implemented within the organisation
along with proper communication with the employees relating to the policies.
Along with this the next step in the balanced scorecard is the alignment of HR systems
and software. In the current technological advance world there are many different software and
systems which have been invented within the field of human resource management. Hence it is
the duty of HR department that they are using all the latest HR systems and software so that there
is no obsolete technology being used by the company (Bailey and et.al., 2018). With the
assistance of this technology the work of the HR also becomes very easy and effective. Hence
this will improve the working capacity of the employees as well within the company.

Within the HR balanced scorecard the last step is creating the HR efficiencies. Under this
stage the major focus of the HR of the company is on creating efficiency is among the employees
(Cuskelly and et.al., 2020). These efficiencies can be created with many different aspect and
strategies. For instance the HR can provide some financial incentives to the employees if they
will work above the standards. This will motivate the employees to work in more effective
manner and achieve the objectives of the business. As a result of these both the working capacity
of the employees will increase and as a result of this the overall company’s objectives will be
achieved in effective and efficient manner.
In addition to this it can also be evaluated that these HRM strategies are linked with
wider management strategies and results in organisational capabilities and increase in
performance of the company. The reason underlying this fact is that if the HRM strategies are
made and used in effective and proper mama then this will motivate employees to work in more
effective manner. As a result of this the performance of the employees will increase and they will
perform to the best resulting in achievement of the business objectives. The key strategy of HR
department of any company is to recruit the people at the right position. Hence when the HR
department of the company will perform the task of recruitment correctly then the employee
recruited will also work in proper and effective manner. The reason underlying this fact is that
the employee will have in mind that company has please then at the right position and as a result
of this it is the duty to perform that task in ethical and moral correct manner.
Along with this another major function of the HR department is the performance
appraisal. When the HR department of the company will effectively use the strategies for
analysing the performance and appraising it then this will definitely motivate employees to work
in more effective and efficient manner. The reason underlying this fact is that when employees
will be valued that is their performance will be valued in proper and ethical manner then this will
motivate them. this in turn will result into the fact that the employee will work in more effective
manner so that they can earn more incentives and bonus if the company has performance based
system. hence as a result of this it can be stated that if HR of the company is critically evaluated
the performance of the employees and pay them higher who are performing well then this will
motivate every employee to perform well (The HR Scorecard: a full guide, 2020). And as a
result of this the overall working capacity of the employees will increase which will result in
better an effective achievement of business objectives.

In addition to this, another strategy which HRM is been using is the effective training and
development. When effective training and development is been undertaken by HR this results in
better and effective management strategies of the company (Greer, 2021). The reason underlying
this fact is that there are many different changes taking place within the external environment
and it is the responsibility of the company that the train the employee for that changes. Hence
here the HR plays a crucial role because they are responsible for providing effective training to
the employees. When effective training is being provided to the employees then this will
motivate them as they will have a feeling that company is doing something for them so in return
employees also perform well and effectively.
In the end it can be evaluated that human resource management is the most important
aspect for the success of the business. Every activity within the business is being dependent on
the human resource of the company and if the human resource is not effective than this will not
result in pita ineffective achievement of the business objectives. The current highlighted the fact
that balanced scorecard under HR strategy is the most important aspect for the success of the
business as it undertakes the overall growth and development of the human resource.

REFERENCES
Books and Journals
Bailey, C., and et.al., 2018. Strategic human resource management. Oxford University Press.
Cuskelly, G., and et.al., 2020. Volunteer selection at a major sport event: A strategic Human
Resource Management approach. Sport Management Review.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), pp.1-21.
Greer, C.R., 2021. Strategic human resource management. Pearson Custom Publishing.
Iqbal, A., 2019. The strategic human resource management approaches and organisational
performance. Journal of Advances in Management Research.
Jiang, K. and Messersmith, J., 2018. On the shoulders of giants: A meta-review of strategic
human resource management. The International Journal of Human Resource
Management, 29(1), pp.6-33.
Online
The HR Scorecard: a full guide. 2020. [Online]. Available through: <
https://www.analyticsinhr.com/blog/hr-scorecard/>